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A question on British Taxation. If I start a new business -

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A question on British Taxation.If I start a new business - do I need to declare taxes at the end of the financial year or can I declare all the year after.I remember reading somewhere that you can wait until you have traded for a complete financial year - is this true ?

Considerable, under self employment you pick your own accounting date, the last day of the month you wish it to be. The amounts declared for tax are then [source: Ward Goodman]:

Business starts

Begins with the date the trade starts and ends with 5 April of that tax year

2 Accounting period ends in Year 2 - if the period is less than 12 months 12 months from the date the trade starts -

if the period is more than 12 months 12 months ending with the accounting date -

if the period is 12 months 12 months ending with the accounting date

Accounting period does not end in Year 2 6 April to 5 April of that tax year

3 Continuing business 12 months ending with the accounting date

You will immediately see that under this system the same income can be taxed twice in different years; this is known as overlap and should be carefully recorded. Overlap relief can be claimed at any time, but many traders keep it until they cease to trade.

Just to be clear - if my accounting date is end of June - then having started in June 2017 - the first tax return is in April 2019 for the accounting year June 2017-June 2018. With paper return in by October 2019 and online by Jan 2020 ?

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